LO 2 LO 2 Percentage of Net Sales Method SE3. At the end of October, Santa Fe Company's management estimates the uncollect- ible accounts expense to be 1 percent of net sales of $1,385,000. Prepare the journal entry to record the uncollectible accounts expense, assuming the Allowance for Uncol- lectible Accounts has a debit balance of $7,000. Accounts Receivable Aging Method SE4. An aging analysis on June 30 of the accounts receivable of U-Z Door Corpora- tion indicates that uncollectible accounts amount to $86,000. Prepare the journal entry to record uncollectible accounts expense under each of the following independent assumptions: a. Allowance for Uncollectible Accounts has a credit balance of $18,000 before adjustment. b. Allowance for Uncollectible Accounts has a debit balance of $14,000 before adjustment